Allied Pilots Association urges postponing decision on American Airlines’ antitrust, joint venture applications

Fort Worth: The Allied Pilots Association (APA), representing 12,000 pilots of American Airlines, has asked the federal government to defer any ruling on American Airlines' application for antitrust exemption to allow for a full examination of related national security, competitiveness and outsourcing issues.

American Airlines, British Airways, Iberia, Finnair and Royal Jordanian had recently filed an application for worldwide antitrust immunity and are seeking rapid approval of their application. 

In a related development, American Airlines also announced it had reached a ''joint business agreement'' with British Airways and Iberia. 

Last week American Airlines, British Airways and Iberia indicated that they had ''no objection'' to combining their antitrust immunity and joint venture applications.

Founded in 1963, the Allied Pilots Association is the largest independent pilot union in the US. Headquartered in Fort Worth, Texas, the APA represents the 12,000 pilots of American Airlines, including 1,970 pilots on furlough. 

The furloughs began shortly after the September 11, 2001 attacks. The APA says thatseveral hundred American Airlines pilots are also on full-time military leave of absence serving in the armed forces. 

''Given the complexity of these proposed agreements, the many unknowns associated with them and other important considerations, we strongly recommend that any decision be deferred until a thorough analysis can be conducted,'' said APA President Captain Lloyd Hill. 

''APA has major job-security concerns relative to what American Airlines is attempting to do, while other interested parties have voiced meaningful opposition to reduced competition among carriers. There simply isn't time for the federal government to conduct an appropriately thorough investigation in a matter of weeks, as American Airlines management has advocated.''

He pointed out that the government depends upon US airlines to carry troops and supplies in wartime as the nation's Civil Reserve Air Fleet.

''APA questions the wisdom of permitting national strategic-interest companies such as airlines to engage in what amounts to a virtual merger with foreign counterparts,'' he said. ''I do not believe anyone fully understands the potential national-security ramifications of such a step.''

Hill also expressed APA's concerns over the potential outsourcing of more American jobs.

''As we have seen in the takeover of freight carrier Airborne Express by German company DHL with 8,000 Ohio workers now losing their jobs, international deals like this can have extremely adverse consequences for American workers,'' he said.

Amongst other opponents of the deal is Virgin Atlantic's Sir Richard Branson, who has been opposed to the agreement since its announcement. He believes that customers would eventually have to pay a heavy price for the combined carriers, who would control almost half of all takeoff and landing slots at London's Heathrow airport. 

Branson has written to the US presidential candidates saying ''airlines everywhere are struggling with the current price of oil, but the solution to their problems should not lie in an anti-competitive agreement, which will inevitably lead to less competition and higher fares.''